It’s easy to overspend and go deeper into debt in December. But it is possible to make this a joyous time of year without breaking your budget.

Make a list

Make a list of who you need to buy gifts for. Having a list helps you buy items that fit within your budget. Write gift ideas beside each name. The goal is to eliminate impulse purchases.

Shop at off peak times, such as during the day when your kids are in school. Eat a good meal before you go into the stores. Keep a running total of what you spend on gifts.

Shorten your list

Why not cut down on shopping for extended family by setting up a gift exchange. As your siblings grow up, get married and have children, your Christmas shopping list gets longer. Consider changing the way you do things.

To shorten your list, draw names. Talk openly with your family about reducing overspending. Each person will only buy for the one person whose name they drew. Agree to a maximum price on gifts. Everyone gets a gift and you all save hundreds of dollars.

Provide hints of reasonably priced gifts you’d like to receive. End the obligation to buy gifts for everyone. Think more about what your giving, to whom and why.

Give your time

Instead of buying retailer gift cards, make your own gift cards. Give your time. For new parents on your gift list, offer an evening of babysitting. For a pet owner, offer to take care of the pet when the owner travels. For an elderly family member, offer free yard work or house cleaning. Gifts of labour are often appreciated more than “stuff” you could buy.

Homemade gifts

If you want to save money while also giving generously, create your own homemade gifts instead of buying stuff from the store. You can make soup mixes, fresh-baked bread or cookies, candles, soap and all kinds of other things at home quite easily and inexpensively.

These make impressive gifts for others because they express your personal touch, which is something you can’t buy from a store. Quite often they are consumable, too. They will not fill someone’s closet with junk.

The personal handwritten note with your gift is just as valuable to the recipient. Write a poem about yourself or about the gift recipient. Create a piece of writing that represents specific moments in your life that contribute to who you are today.

Host a party

Instead of giving gifts to a large group of friends, invite them over for a Christmas party that you host. Go tobogganing or skating together.

If you are musically talented, put on a Christmas concert for your family and friends. If you really want to be unselfish and bring cheer to others, go to a local nursing home and sing carols.

Avoid credit cards

Do you dread the thought of seeing a large balance owing on your credit card statement in January? Why add double digit interest charges to the cost of already expensive gifts? Leave your credit cards at home. Use cash when you go shopping. Use the rewards points from credit cards to get gift cards.

Buy after Christmas

The month before Christmas is a costly time to shop. Why not wait to shop when bargains are available in January? If you’re planning a big-ticket family purchase such as a television or games console, give the kids a nicely-wrapped IOU, telling them that you are waiting for the sales in January. The kids get a nice gift plus a lesson in good money management.

Terry McBride, a member of Advocis, works with Raymond James Ltd. The views of the author do not necessarily reflect those of Raymond James Ltd. Information is from sources believed reliable but cannot be guaranteed. This is provided for information only. We recommend that clients seek independent advice from a professional advisor on tax-related matters. Securities offered through Raymond James Ltd., member of the Canadian Investor Protection Fund. Insurance services offered through Raymond James Financial Planning Ltd., not a member of the Canadian Investor Protection Fund.

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